Former Cathay cinema operator MM2 Asia ordered to partially settle unpaid CPF contributions

The group recorded a net loss of S$199.4 million for the year ended Mar 31, 2026, and trading in its shares was suspended on Nov 10, 2025 after it said it could not demonstrate its ability to continue as a going concern.

MM2 Asia and MM2 Entertainment subsequently applied for moratoriums to facilitate the restructuring of their financial and business affairs. These were granted by the court and later extended.

OUTSTANDING PAYMENTS

The CPF cases first came before the courts on Mar 18 this year.

On Wednesday, the companies’ representative Melvin Ang Wee Chye, founder and executive chairman of MM2 Asia, told the court their ability to make CPF payments had been constrained by an ongoing scheme of arrangement, with funds unable to come in until the process was completed.

At the previous court mention, MM2 Asia had been directed to pay at least S$11,000 and MM2 Entertainment at least S$60,000. 

Mr Ang said MM2 Asia remained committed to paying the sum but was prioritising staff salaries with the funds available. He added that MM2 Entertainment had paid S$20,000 towards its outstanding contributions a day before Wednesday’s hearing.

The CPF prosecutor said she would need time to verify the payment, but noted the company would still be S$40,000 short of the amount it had previously been directed to pay.

The prosecution suggested a final adjournment for both companies to make the required partial payments, adding that it would proceed on three charges against MM2 Asia and eight against MM2 Entertainment. 

The prosecution said the prescribed fine ranges from S$1,000 to S$5,000 per charge for first-time offenders, and that it will leave sentencing to the court.

The court granted both companies a final adjournment, directing that the partial payments be made in full by the next hearing on Sep 16.